Will Petro be able to modify energy rates or not?

Will Petro be able to modify energy rates or not?

Currently, the country is in a latent concern for the rise in energy rates which has been going on for a few weeks. Both economic associations and the Government have discussed possible solutions to this situation, which is global in nature.

(Read: Why is Petro considering decreeing an economic emergency in Colombia?).

During the Andesco 2022 Congress, President Gustavo Petro announced that he would seek control of the Energy and Gas Regulation Commission (Creg) to make changes to the formula currently used to calculate the energy rate.

It should be noted that in the country this item is defined according to IPC (Consumer Price Index) and PPI (Producer Price Index). Through an indexing process, the final value of the public service is determined.

However, both the president and the Minister of Mines, Irene Vélez, have proposed creating a special index for the sector. “TWe have an article of a law made by former President Iván Duque in his Development Plan that allows us to assume the functions of the Creg. We are going to use that itemr,” said the president.

(Read: How would the change that Petro would make to the calculation of the energy rate).

In this case, Petro refers to the Article 290 of the National Development Plan that was issued in 2019. There it is established that the Creg was to modify the rate formulas “when this is strictly necessary and motivated by the inclusion of new agents, activities or technologies, complying with the established criteria.”

In the third paragraph of said article it is clarified that the powers can be assumed by the president or by the Ministry of Mines and Energy.

However, does the president have these powers? Experts gave their position on the matter.

Norma is not for that, experts say

The reform to the Creg would be ready before the end of the current government.

ETCE file

Sources from said sector told EL TIEMPO that article 290 of Law 1955 of 2019 applies only to the entry of new agents and to new business activities as a result of the energy transformation.

They are screwed on the subject. Law 142, which is the Public Services Law, states that the powers belong to the President and he can resume functions of the Regulation Commission, except in the electricity sector, which has its own law, which is Law 143, in which it grants the specific faculties to the Creg”specified a former member of the Creg, who points out that this has always been the legal concept of several lawyers.

(Also: Price indexation: what it is and how it would be affecting costs).

For his part, Nicolás Arboleda, senior associate at Baker Mckenzie, an expert firm in Mining and Energy issues, explained that this article does not have this scope, since it refers specifically to the case of an entry of a new agent.

Finally, in addition to the meetings that took place at the Andesco congress with the agents of the electricity sector chain, new meetings will be held next week with the aim of making a public announcement on Friday, September 16.

BRIEFCASE
With information from EL TIEMPO*

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